NALCO shares hit ₹252.65, rising 5%, achieving a new all-time high

Shares of National Aluminium Company (NALCO) reached a new peak of ₹252.65, climbing 5% in Thursday's intra-day trade on the BSE. Despite a weak market where the BSE Sensex dropped 0.53% to 77,167, NALCO's shares soared, continuing their upward trajectory. Over the past three days, the stock has surged by 15%, buoyed by news of China cancelling export tax rebates for aluminium and copper products, effective December 1, 2024.

A winning year for NALCO amid share market investment

In the last year, NALCO's share price skyrocketed 170%, outperforming the BSE Sensex, which rose 17% in the same period. This makes the company an attractive option for those exploring share market investment. The state-owned Navaratna CPSE, under the Ministry of Mines, holds a key position in India's aluminium production, with the Government of India retaining a 51.28% stake.

NALCO's performance this year has been particularly remarkable. Its net profit for the first half of FY25 jumped 199% to ₹1,663 crore, compared to ₹556 crore in the same period last year. This growth has been fuelled by increased domestic metal sales, a 65% rise in stock value since April, and strong global aluminium price trends.

Drivers of growth and future outlook

The cancellation of China's export tax rebates is expected to tighten global supply, pushing aluminium prices higher. This development is advantageous for Indian producers like NALCO, which recorded the highest cumulative domestic metal sales of 221,966 MT during H1FY25. Its focus on expanding alumina refinery operations and cost-saving through captive coal mining further positions the company for growth.

Analysts predict robust demand for aluminium in India, driven by infrastructure development, urbanization, and renewable energy projects. Initiatives like aluminium-bodied Vande Bharat trains and the solar rooftop installation market are expected to contribute to a 9% annual growth in aluminium demand through FY24 and FY25.

Key takeaways

• Strong market performance: Stock price up 170% YoY, outperforming BSE Sensex's 17% rise.
• Favourable global trends: Tightened supply due to China's policy changes boosts NALCO's prospects for share market investment.

Future growth drivers: Domestic aluminium demand bolstered by infrastructure, renewable energy, and urbanization projects.